Municipal Strategy

Haverford’s municipal fixed income strategy is designed to enhance after-tax returns while preserving capital and income. As the municipal bond market is comprised of individual local markets, not one homogeneous market, every state brings unique considerations to the portfolio composition and security selection.

State and local tax implications.

Investment Philosophy

Emphasize intermediate maturity holdings and de-emphasize market timing in an effort to control risk.

Investment Strategy

The selection of individual bonds is determined by analysis of multiple factors such as:

Credit strength of the issuer

Strength of the bondholder’s claim on the revenues.

Call and other redemption provisions

Yield curve analysis of the increased benefit, if any, for maturity extension

Portfolio Characteristics*

Characteristic

Haverford

Bloomberg
Barclays

Yield to Worst

1.6%

1.6%

Coupon

3.0%

4.7%

Current Yield

2.9%

4.2%

Quality

AA

AA

Maturity

6.0

6.0

Effective Duration

2.9

3.9

Effective Duration Allocation*

Characteristic

Haverford

Bloomberg
Barclays

0-1 Years

14.3%

4.3%

1-3 Years

46.4

34.6

3-4 Years

13.1

17.0

4-6 Years

16.9

26.9

6-8 Years

9.2

16.3

Over 8 Years

0.1

0.9

Quality Distribution*

Haverford

Bloomberg Barclays Muni

Notes

“Bloomberg Barclays” refers to the Bloomberg Barclays 1-10 Year Municipal Index. The Bloomberg Barclays 1-10 Year Municipal Bond Index is illustrated for comparative purposes only. It is a rules-based, market-value-weighted index engineered for the long-term tax- exempt bond market. This index is the 1-10 Year component of the Municipal Bond index. It is not possible to invest directly in an index.

*Based on recommended portfolio weights. Portfolio Characteristics, Sector Allocation and Quality Distribution are subject to change at any time based on market or other conditions.

Disclosure

All Data as of June 30, 2019. The information presented should not be construed as investment advice or recommendations with respect to specific securities presented and may not represent the holdings or weighting of any particular portfolio.

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